VCN – Recently, General Taxation Department has directed provincial Taxation Departments to request individual and online business have to register and pay tax. HCMC Taxation Department has officially implemented while Hanoi Taxation Department starts to implement. However, the results were not as expected. Mrs. Nguyen Thi Cuc, Chairman of Vietnam Tax Consultant Association, has discussed with the press about this issue.

register online business tax should be voluntary to avoid penalty
Mrs. Nguyen Thi Cuc

Dear Madam, the Tax sector is promoting to collect individual and online business via the internet. How do you appraise about this activity?

In my opinion, the management and tax collection for online business through social networks is an objective inevitably. So, obviously, online businesses have to pay tax as normal business

The General Department of Taxation has issued a document to instruct the local taxation departments to require individuals and online businesses to register and pay taxes. Among them, besides the enterprise, individuals only run online sales; there are also businesses and individuals that are doing normal business and doing business online. For the second type, they must declare, combine both business revenue on the internet and the traditional business.

In cases that the total turnover of both business lines is less than 100 million vnd, they are entitled to tax exemption. In all other cases that are over 100 million vnd of turnover, the tax must be declared. If they are not implemented, tax authorities will take coordinated measures to require individuals and businesses to perform equally according to the tax law. Obviously, that will facilitate to enterprises to develop, while ensuring equality between traditional business and online business.

In fact, the households and traditional businesses have to rent premises, hire employees and pay taxes. Thus there is no reason for doing online business that saves site rental costs and labor costs are not paid.

Recently, the HCMC Taxation Department has received the registration of individuals, online businesses through the Internet. However, so far, the statistics have not been as expected. Hanoi City has just started to implement, so it does not specific statistics. According to you, if we want to successfully implement this tax collection, what do the tax authorities need to?

Firstly, the propaganda and encouraging individuals to self-registration are the most important. At a certain time, individuals and online businesses still do not register, the tax authorities will be forced to use the allowed measures such as inspection even tax enforcement to coerce households, individuals on a ground with discipline, re-equality of tax.

Do you have any recommendations for individuals and online businesses without tax registration?

I think that households and enterprises that have received notice from the tax authority should voluntarily declare themselves instead of being applied “hard” measures from the Tax Authority. In fact, besides the mobilization of available inspectors, the tax authorities can also coordinate with other competent agencies such as management media agencies, credit institutions, even collaborates with network data security to recover data that individuals purposely delete to recalculate taxable revenue for retrospective collection.

When individuals and businesses have not voluntarily, the tax arrears are also accompanied by fine from 1 to 3 times. It is quite heavy. Therefore, individuals and businesses should voluntarily register and declare tax under the guidance of the tax authorities.

Thank you!

By Hồng Vân/Thanh Thuy



VCN- On 24th May 2017, the Ministry of Finance issued Decision No. 942 / QD-BTC amending and supplementing the list of registration fee calculation, issued with Circular No. 304/2016/TT- BTC.

hundreds of cars and motorcycles are added to the registration fee calculation table
The MCLAREN 650S SPIDER has the highest registration fee of 22.02 billion vnd.

In the imported vehicles which have been added, the MCLAREN 650S SPIDER has the highest registration fee of 22.02 billion vnd, followed by BENTLEY FLYING SPUR with 19.5 billion vnd; and MCLAREN 570S with 12.57 billion vnd.Accordingly, the Ministry of Finance has supplemented the registration fee calculation price of 135 types of imported cars of 9 seats or less; 19 types of cars of 9 seats or less assembled domestically; 2 types of imported electric cars; 2 types of 4 wheel vehicles with engines built and assembled domestically; 29 types of imported two-wheel motorcycles; and 127 types of two-wheeled motorcycles produced and assembled domestically.

Some imported new cars have been added in this price list such as Audi Q7 3.6 QUATTRO with 2.734 billion vnd; AUDI A7 SPORTBACK 3.0 TFSI QUATTRO with 3.427 billion vnd; BMW X6 xDRIVE 35i M SPORT with 3.446 billion vnd; CHEVROLET CORVETTE STINGRAY COUPE 2LT Z51 with 5.06 billion vnd; FORD F150 LARIAT with 3.65 billion vnd; JAGUAR XJL AUTOBIOGRAPHY with 11.086 billion vnd; LAND ROVER DISCOVERY HSE LUXURY with 4.68 billion vnd, and LEXUS RX350 F SPORT AWD with 4.15 billion vnd.

In addition, the Ministry of Finance has amended the registration fee rates for 27 types of imported cars of 9 seats or less, 3 types of cars of 9 seats or less assembled domestically; 3 types of imported two-wheel motorcycles; 7 types of two-wheeled motorbikes produced or assembled domestically.

This price list is amended and supplemented because the emergence of automobiles and motorbikes has not been yet regulated in the price list issued by the Ministry of Finance.

In addition, other contents are still implemented in accordance with Circular 304. In fact, the actual price of transfer of cars and motorbikes in the market is lower than the price for calculation of registration fee issued by the Ministry of Finance, so the registration fee calculation price is the price in accordance with the price list issued by the Ministry of Finance.

In the case where at the time of submitting registration fee declarations, the actual transfer price of automobiles and motorbikes on the market shall be 20% or higher than the current price list currently applied in registration fee calculation prices as specified in the price list issued by the Ministry of Finance, the tax office shall base on the registration fee of automobiles and motorcycles already available at the price table and at Point a, Clause 3, Article 3 of the Minister of Finance’s Circular No. 301/2016 / TT-BTC of 15th November 2016 to determine the registration fee calculation price as prescribed.

In the case where automobiles and motorbikes have not been yet prescribed in the price index promulgated by the Ministry of Finance, the Tax Department shall notify the local Tax Branches about the prices for registration fee calculation applicable uniformly in the localities.

This decision has been formally adopted by 24th May 2017.

By Hong Van/ Hoang Anh